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FRAMEWORK FOR RESOURCE MOBILIZATION
SECOND INVESTORS GROUP, St Albans, United Kingdom, February 2016
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Bridging the Funding Gap
Although financing for RMNCAH has increased in recent years , the financial shortfall was estimated at US$33.3 billion in 2015 in high-burden, low- and lower-middle- income countries, which amounts to US$9.42 per capita per year. GFF works to close the gap in three ways: 1. By crowding in additional domestic resources, particularly by ensuring the benefits of economic growth are directed to the health of women, children, and adolescents, and by improving the efficiency of the utilization of resources for health through smart financing, which is estimated to result in a reduction of the incremental resource needs of approximately 15% by 2030; 2. By harnessing the private sector through innovative financing mechanisms that increase investment into RMNCAH and foster private sector partnerships; 3. By further mobilizing development assistance for health and improving the coordination of this assistance. As a result of the combined effect of these approaches, the gap falls to US$7.4 billion (US$1.74 per capita) in Domestic Resources: Ensure: economic growth leads to increased government revenue (strengthened tax collection) health is prioritized in national budgets RMNCAH receives adequate resources within health sector Improvement in utilization of health financing – allocative efficiency
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Role of GFF Trust Fund The GFF Trust Fund provides catalytic funding to close the financing gap: By supporting IC and HFS development By linking to IDA and IBRD financing By incentivizing domestic resource mobilization By crowding-in private financing The GFF Trust Fund provides catalytic funding to close the financing gap: By supporting IC and HFS development which are critical to mobilizing and improving the efficiency of domestic financing and DAH By linking to IDA and IBRD financing - incentivizes the allocation of additional financing for RMNCAH and improves the quality of IDA/IBRD financing by strengthening the process of identifying national priorities By providing technical assistance on how countries can increase domestic resource mobilization and directly incentivizing it By crowding-in private financing, including by supporting pay-for-performance schemes and by de-risking private investments
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Harnessing the Private Sector
Private financing - mobilize international private capital and the broader resources of private companies that operate globally: through innovative financing mechanisms through partnerships with private sector at global, regional and national level Private financing - mobilize international private capital and the broader resources of private companies that operate globally: through innovative financing mechanisms that increase investment into RMNCAH through partnerships with private sector at global, regional and national level to draw in resources and expertise
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Development Assistance for Health
Use DAH in a more innovative way (e.g., IBRD buy-downs) New sources include emerging donors Make greater use of financing from IDA/IBRD (IDA Replenishment) The Global Fund and Gavi are increasing financing to RMNCAH Use DAH in a more innovative way through approaches that create a multiplier effect and are strongly results focused (e.g., IBRD buy-downs) New sources include emerging donors not yet engaged on RMNCAH (certain geographies/types of countries - e.g., fragile states) Provide further support to countries that wish to make a greater use of financing from IDA, IBRD, and other multilateral development banks for RMNCAH The Global Fund and Gavi are increasing financing to RMNCAH (GF strategic plan)
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GFF Areas of Focus GFF Investors Group support needed on four dimensions: Advocating for increased resources Ensuring complementarity of financing and alignment around investment case Improving the allocative efficiency of DAH Exploring innovative approaches to increase multiplier effect of existing resources GFF Investors Group is well placed to support this work, with a focus on four particular dimensions: 1. Advocating for increased resources at both national and international levels; - national levels INCLUDES private sources of funding at the local level like foundations/ HNWI etc 2. Ensuring the complementarity of financing at the national level and alignment around the investment case to increase efficiency and improve value for money; 3. Improving the allocative efficiency of development assistance for health by examining the distribution of DAH in comparison with need, particularly to ensure that the neediest countries have adequate resources; 4. Exploring innovative approaches to increase the multiplier effect of existing resources.
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Next Steps Strong communication and advocacy materials
Tailor value propositions to potential funders Country focused stories and value, results tracking Outreach events and partnership advocacy efforts Develop champions and cultivate high level advocates Reporting, accountability and transparency Long term fund-raising plan
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Recommendation It is recommended that the Investors Group retain this as a regular item on their agenda and that the Secretariat provide annual updates, to be given at the last Investors Group meeting of every year, on the status of the strategic directions laid out in this paper.
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